The latest report by global independent research analysts, CM Group, reveals greater optimism for the aluminium industry post-Covid with global aluminium demand expected to reach 298 million tonnes per year by 2050.
The report titled An Initial Assessment of the Impact of the Covid–19 Pandemic on Global Aluminium Demand notes that while it is inevitable that the demand for aluminium will fall this year, there remains significant optimism to mid-century, adding that the long-term drivers of aluminium growth remain after Covid-19 and, if anything, the opportunities are greater.
The report, commissioned by the International Aluminium Institute, indicates a growing hunger for environmentally friendly solutions in transport, infrastructure, energy and food security, which aluminium is poised to deliver. The report says that this was a trend before the pandemic but is being accelerated by the crisis.
Survey responders express a strong positive sentiment within the industry with 83% of respondents saying the pandemic will have just a short-term impact on aluminium consumption; with most expecting China’s economy to rebound in 2021, which aligns with the report’s own data.
Roughly 56% of those surveyed said they do not think the pandemic would cause fundamental changes to supply and consumption and that low-cost and well-performing organisations can benefit and increase their market share at the expense of outdated, high-cost rivals.